Hi David. You suggested following when selling an item I had bought previously:
Debit (increase) checking account asset account by $120 Credit (reduce) the music equipment account by $100 Credit (increase) an equity profits account by $20 Would you therefore suggest creating an account called "Profits selling music equipment" under the main placeholder account "Equity"? If so, are we in this situation talking about split transactions? Or if I decide I ignore the profit I made, can I just use simple transactions? Like adding the sale like this: - decrease "Assets:Music Equipment" with a description "Yamaha Guitar - sale" - increase "Assets:Checking Account"? TIA, F. https://www.instagram.com/boniforti_music https://soundcloud.com/boniforti_music https://bonny-j.bandcamp.com Am Do., 19. Sept. 2024 um 00:05 Uhr schrieb David Warren <da...@warren1.net >: > Seems like you may want to read some basic accounting materials and > afterward decide what it is you really want to use gnucash to track over > time. Are you running a business selling music equipment? Or do you have a > hobby where from time to time you might upgrade or buy new equipment etc.? > > Buying $100 of music equipment in a basic accounting set up might be > Debit (increase) the music equipment asset account for $100 and > Credit (reduce) the checking account asset account by the offsetting $100 > > Then later selling that same original equipment for $120 would result in a > more complex entry of > > Debit (increase) checking account asset account by $120 > Credit (reduce) the music equipment account by $100 > Credit (increase) an equity profits account by $20 > > Depending on both the quantity of equipment and the frequency of trading, > you might elect to have multiple asset accounts to reflect different types > of equipment or even for individual pieces of equipment > > In standard accounting, I don't know what a Music Equipment Sold account > would represent. Though your equity account could be labeled "Profits from > music equipment sold" > > On Wed, Sep 18, 2024, 5:39 PM Boniforti Flavio <bonifort...@gmail.com> > wrote: > >> Hi. >> Still very noob here, so bear with me please. >> >> I've got the following accounts (among others): >> >> Music equipment >> Music equipment sold >> Checking account >> >> When I buy music equipment, I take the money from my checking account and >> add it to the "music equipment" account. >> When I sell music equipment, how should I register it? I thought that the >> account "music equipment" would decrease by the sold value, the checking >> account would increase by the same amount... but what happens with the >> "Music equipment sold" account? >> Or am I wrong in separating "music equipment" from "music equipment sold"? >> >> Thanks, >> F. >> >> https://www.instagram.com/boniforti_music >> https://soundcloud.com/boniforti_music >> https://bonny-j.bandcamp.com >> _______________________________________________ >> gnucash-user mailing list >> gnucash-user@gnucash.org >> To update your subscription preferences or to unsubscribe: >> https://lists.gnucash.org/mailman/listinfo/gnucash-user >> ----- >> Please remember to CC this list on all your replies. >> You can do this by using Reply-To-List or Reply-All. >> > _______________________________________________ gnucash-user mailing list gnucash-user@gnucash.org To update your subscription preferences or to unsubscribe: https://lists.gnucash.org/mailman/listinfo/gnucash-user ----- Please remember to CC this list on all your replies. You can do this by using Reply-To-List or Reply-All.
